CIC Energy Announces Increase in Mineral Resource Estimate for the Mmamabula Coal Field

Road Town, Tortola, British Virgin Islands (August 14, 2008) – CIC Energy Corp. (“CIC Energy” or the “Company”) (TSX:ELC, BSE: CIC Energy) is pleased to announce the results of an updated mineral resource estimate for its Mmamabula Coal Field (“Mmamabula”) in Botswana, Africa. The global mineral resource estimate for Mmamabula now totals approximately 2.93 billion tonnes (“Bt”) of coal in the measured and indicated categories. This is an increase in the region of 28% from the previously reported 2.28 Bt of coal. An approximate 34 million tonnes (“Mt”) of coal is further reported in the inferred category (see Tables 1 to 5 and Figure 1).

“The updated coal resource estimate for Mmamabula of almost 3 billion tonnes potentially positions CIC Energy as a major coal supplier in the region,” said Mr. Greg Kinross, President of CIC Energy. “We are particularly pleased that our comprehensive exploration program has resulted in 98% of our coal resources being in the measured category, which is the highest level of resource.”

Table 1 – Mmamabula Global Mineral Resource Estimate (D1 + M2 Seams: Mmamabula East incorporating the Mookane, Dovedale, Serorome and Border Blocks and Mmamabula South)

Category	Tonnage (Mt)
Measured	2,866.3
Indicated	62.4
Measured + Indicated (total)	2,928.7
Inferred	34.2

Figure 1: Mmamabula Global Mineral Resource Estimate: 2.93 Bt (measured and indicated) and 34 Mt (inferred) at Mmamabula East and Mmamabula South.

To date five coal-bearing zones have been defined on Mmamabula, these consist of the Mookane, Serorome, Dovedale and Border blocks (from west to east) at Mmamabula East, as well as a single block at Mmamabula South, herein referred to as “Mmamabula South” (See Figure 1). In CIC Energy news releases dated June 22, 2006, September 7, 2006 and April 18, 2007, the Company previously announced mineral resource estimates for the Mookane, Dovedale and Serorome Blocks at Mmamabula East as well as Mmamabula South, which totaled 1,660 Mt of coal in the measured category, 638 Mt in the indicated category and 74 Mt in the inferred category. The resource estimate in this news release includes an update of the Mookane, Dovedale and Serorome Block resource, as well as initial resource estimate for the Border Block. Drilling is continuing at a reduced rate at the Border Block with the objective of completing the boreholes that had to be delayed due to the unusually high rainfall. The outcomes of this drilling are not expected to result in a material change to the mineral resource estimate.

The mineral resource estimate in this news release was prepared by Ms. Lesley Jeffrey, who is a “Qualified Person” as defined by Canadian Securities Administrators (CSA) National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”).  Ms. Jeffrey is an employee of the Company’s subsidiary Bon-Terra Mining (Proprietary) Limited.
To date a total of 2,235 drill holes have been drilled in both the Mmamabula South and East Blocks, and 1,948 of these were drilled by CIC Energy (174 in the South and 1,774 in the East). Due to stringent QA/QC procedures during the process of resource modeling and estimation only select non-CIC Energy drill holes were included.

Drill hole spacings for the Mmamabula South, Mookane, Dovedale, Serorome and Border Blocks are typically set at 500 metres (“m”) by 500 m.

The current mining method proposed for the mineral resources is conventional underground bord and pillar mining using continuous miners (“CMs”). Alternative mining methods aimed at optimizing resource utilization are being investigated.

CIC Energy has concluded that coal from all the updated and new resource estimate areas within Mmamabula are suitable for steam-producing thermal power generation, with raw coal calorific values (“CV”) of approximately 20.8 megajoules per kilogram (“MJ/kg”) for the D1 seam and 22.6 MJ/kg for the M2 seam.

Washability studies for the D1 and M2 seams in all the current resource estimate areas indicate that washing is an effective method of reducing the sulphur content of the coal from between 1.51% and 3.48% to between approximately 0.24% and 0.57%, at a cut point density of 1.8 g/cm3. Washability analysis indicates theoretical yields of between 75.27% and 88.74% at a cut point density of 1.8 g/cm3. Ongoing studies by CIC Energy are examining partially washing sized coal as an alternative method to reduce sulphur contents.

The D1 and M2 coal seams have been identified within all areas modeled to date, as the principal economic targets, based on coal quality and favorable thicknesses. The following structural characteristics have been noted in the four resource areas modeled during the course of the latest resource estimation exercise; please note that the Mmamabula South Block has not been remodeled:

Dovedale Block: The D1 seam mineral resource varies in thickness from 1.82 m to 6.20 m, with an average thickness of 3.5 m and occurs at depths from surface of between 21 m to 110 m, with an average depth to roof of 76 m. The seam dips shallowly at 0.5o to 4.0o, to the east in the western portion of the area and to the southeast or northwest, on either side of a northeast-trending palaeo high. The M2 seam mineral resource, which occurs approximately 20 m stratigraphically below the D1 seam, varies in thickness from 1.65 m to 4.87 m, with an average thickness of 3.28 m and occurs at depths from surface of between 12 m to 143 m, with an average depth to roof of 99m. The M2 seam has a comparable dip to the D1 seam. Weathering to an average depth of 30 m has affected the D1 and M2 seams in places. Only coal seams where the seam roof is below the weathered horizon are reported in the current mineral resource estimate. A discount of 2% has also been applied to the resource to account for faulting along the southern edge of the resource.

Serorome Block: The D1 seam mineral resource varies in thickness from 1.8 m to 8.60 m, with an average thickness of 4.34 m and occurs at depths from surface of between 14m to 83m, with an average depth to roof of 40 m. The seam dips shallowly at 0.5o to 1.4o, predominantly eastwards to the east of a northwest-trending palaeo high. The M2 seam mineral resource, which occurs approximately 20 m stratigraphically below the D1 seam, varies in thickness from 2.0 m to 6.54 m, with an average thickness of 3.47 m and occurs at depths from surface of between 24 m to 108 m, with an average depth to roof of -58 m. The M2 seam has a comparable dip to the D1 seam. Weathering to an average depth of 30 m has affected the D1 and M2 seams in places. Only coal seams where the seam roof is below the weathered horizon are reported in the current mineral resource estimate. A discount of 5% has been applied to the resource to account for faulting along the southern edge of the resource.

Border Block: The D1 seam mineral resource varies in thickness from 1.50 m to 9.30 m, with an average thickness of 3.20 m and occurs at depths from surface of between 11 m to 114 m, with an average depth to roof of 108 m. The seam dips shallowly at 0.5o to 1.4o, predominantly to the southeast, southeast of a northeast-trending palaeo high. The M2 seam mineral resource, which occurs approximately 20 m stratigraphically below the D1 seam, varies in thickness from 1.50 m to 6.38 m, with an average thickness of 3.20 m and occurs at depths from surface of between 14 m to 146 m, with an average depth to roof of 82 m. The M2 seam has a comparable dip to the D1 seam. Weathering to an average depth of 30 m has affected the D1 and M2 seams in places. Only coal seams where the seam roof is below the weathered horizon are reported in the current mineral resource estimate. A discount of 5% has been applied to the resource to account for faulting along the southern edge of the resource.

Mmamabula South: The D1 seam mineral resource varies in thickness from 1.6 m to 11.8 m, with an average thickness of 6.0 m and occurs at depths from surface of between 29 m to 144m, with an average depth to roof of 89 m. The seam dips at 0 degrees to 5 degrees, predominantly to the southwest and northwest. The M2 seam mineral resource, which occurs approximately 20 m stratigraphically below the D1 seam, varies in thickness from 1.5 m to 4.3 m, with an average thickness of 3.2m and occurs at depths from surface of between 33 m to 169 m, with an average depth to roof of 106 m. The M2 seam has a comparable dip to the D1 seam. Weathering to an average depth of 30 m has affected the D1 and M2 seams in places. Only coal seams where the seam roof is below the weathered horizon are reported in the current mineral resource estimate. A discount of 20% has been applied to the resource to account for faulting which has split the resource area into 11 separate faulted blocks. Interpretive vertical throws of around 50 m separate the faulted blocks.

Mookane Block: The D1 seam mineral resource varies in thickness from 1.00 m to 9.05 m, with an average thickness of 5.69 m and occurs at depths from surface of between 28 m to 121 m, with an average depth to roof of 61 m. The seam dips shallowly at 0.5o to 1.4o, predominantly to the west, west of a northwest-trending palaeo high. The M2 seam mineral resource, which occurs approximately 20 m stratigraphically below the D1 seam, varies in thickness from 1.50 m to 6.50 m, with an average thickness of 3.29 m and occurs at depths from surface of between 25 m to 143 m, with an average depth to roof of 76 m. The M2 seam has a comparable dip to the D1 seam. Weathering to an average depth of 30 m has affected the D1 and M2 seams in places. Only coal seams where the seam roof is below the weathered horizon are reported in the current mineral resource estimate. No discount has been made for interpreted geological loss due to interpreted continuity of the ore body.

Table 2 – Updated Mineral Resource Estimate, Dovedale Block, (Mmamabula East)
(effective date: August 14, 2008)
Due to rounding errors summation of measured and indicated resources may not total exactly

D1 + M2 Seams Mineral Resource Estimate¹

Category	Tonnage (Mt)
Measured	905.9
Indicated	0
Measured + Indicated (total)	905.9
Inferred	0

D1 Seam Mineral Resource Estimate¹

Category	Area (ha)	Average thickness (m)	Tonnage (Mt)
Measured	7,721.7	3.35	403.2
Indicated	0	-	0
Measured + Indicated (total/average)	7,721.7	3.35	403.2
Inferred	0	-	0

M2 Seam Mineral Resource Estimate¹

Category	Area (ha)	Average thickness (m)	Tonnage (Mt)
Measured	10,399.0	3.28	502.7
Indicated	0	-	0
Measured + Indicated (total/average)	10,399.0	3.28	502.7
Inferred	0	-	0

¹ includes a 2% discount for interpreted geological loss due to faulting

Table 3 – Updated Mineral Resource Estimate, Serorome Block, (Mmamabula East)
(effective date: August 14, 2008)
Due to rounding errors summation of measured and indicated resources may not total exactly

D1 + M2 Seams Mineral Resource Estimate²

Category	Tonnage (Mt)
Measured	432.5
Indicated	0
Measured + Indicated (total)	432.5
Inferred	0

D1 Seam Mineral Resource Estimate²

Category	Area (ha)	Average thickness (m)	Tonnage (Mt)
Measured	4,037.5	4.34	266.8
Indicated	0	-	0
Measured + Indicated (total/average)	4,037.5	4.34	266.8
Inferred	0	-	0

M2 Seam Mineral Resource Estimate²

Category	Area (ha)	Average thickness (m)	Tonnage (Mt)
Measured	3,206.1	3.47	165.6
Indicated	0	-	-
Measured + Indicated (total/average)	3,206.1	3.47	165.6
Inferred	0	-	0

Table 4 – Initial Mineral Resource Estimate, Border Block, (Mmamabula East)
(effective date: August 14, 2008)
Due to rounding errors summation of measured and indicated resources may not total exactly

D1 + M2 Seams Mineral Resource Estimate²

Category	Tonnage (Mt)
Measured	558.8
Indicated	27.7
Measured + Indicated (total)	586.5
Inferred	30.5

D1 Seam Mineral Resource Estimate²

Category	Area (ha)	Average thickness (m)	Tonnage (Mt)
Measured	3,570.9	3.20	168.7
Indicated	349.2	3.29	15.9
Measured + Indicated (total/average)	3,920.1	3.20	184.6
Inferred	220.6	4.04	12.5

M2 Seam Mineral Resource Estimate²

Category	Area (ha)	Average thickness (m)	Tonnage (Mt)
Measured	8,948.3	3.22	390.1
Indicated	220.6	3.62	11.8
Measured + Indicated (total/average)	9,168.9	3.22	401.8
Inferred	349.2	3.52	18.0

² includes a 5% discount for interpreted geological loss due to faulting

Table 5 – Previously Reported Mineral Resource Estimate, Mmamabula South
(effective date: May 24, 2007)
Due to rounding errors summation of measured and indicated resources may not total exactly

D1 + M2 Seams Mineral Resource Estimate³

Category	Tonnage (Mt)
Measured	276.3
Indicated	34.7
Measured + Indicated (total)	311.0
Inferred	3.7

D1 Seam Mineral Resource Estimate³

Category	Area (ha)	Average thickness (m)	Tonnage (Mt)
Measured	2,482.5	6.01	183.2
Indicated	308.0	5.92	22.6
Measured + Indicated (total/average)	2,790.5	6.00	205.8
Inferred	46.0	5.98	3.4

M2 Seam Mineral Resource Estimate³

Category	Area (ha)	Average thickness (m)	Tonnage (Mt)
Measured	2,392.8	3.19	93.1
Indicated	322.8	3.10	12.1
Measured + Indicated (total/average)	2,715.6	3.18	105.2
Inferred	7.8	3.60	0.3

³ includes a 20% discount for interpreted geological loss due to faulting

Table 6 – Updated Mineral Resource Estimate, Mookane Block, (Mmamabula East)
(effective date: August 14, 2008)

D1 + M2 Seams Mineral Resource Estimate⁴

Category	Tonnage (Mt)
Measured	692.8
Indicated	0
Measured + Indicated (total)	692.8
Inferred	0

D1 Seam Mineral Resource Estimate⁴

Category	Area (ha)	Average thickness (m)	Tonnage (Mt)
Measured	4,663.4	5.61	403.6
Indicated	0	-	0
Measured + Indicated (total/average)	4,663.0	5.61	403.6
Inferred	0	-	0

M2 Seam Mineral Resource Estimate⁴

Category	Area (ha)	Average thickness (m)	Tonnage (Mt)
Measured	5,783.6	3.31	289.1
Indicated	0	-	0
Measured + Indicated (total/average)	5,783.6	3.31	289.1
Inferred	0	-	0

⁴ no discount was made for interpreted geological loss due to interpreted continuity of ore body

Qualified Person, Quality Assurance/Quality Control and Methodology

The “Qualified Person”, as such term is defined in NI 43-101, who prepared the  mineral resource estimates and other technical information presented in this news release, is Ms. Lesley Jeffrey.  Ms. Jeffrey is an employee of the Company’s subsidiary, Bon-Terra Mining (Proprietary) Limited, and is a member of the South African Council for Natural Scientific Professions and is deemed a “Competent Person” under the South African SAMREC Code.  Ms. Jeffrey has reviewed and approved the contents of this news release.

CIC Energy is currently preparing a NI 43-101 technical report, which will be filed on SEDAR once completed.

Mr. Grant van Heerden, Pr.Sci.Nat., of SRK Consulting (South Africa) (Pty) Limited (“SRK”) has reviewed and approved the technical content of this news release. Mr. van Heerden is a member of the South African Council for Natural Scientific Professions and is deemed a “Competent Person” under the South African SAMREC Code.

Mr. van Heerden has reviewed, in principal, the processes and procedures used at the Mmamabula site in Botswana to generate geological information (drilling, logging and sampling) for input into the geological models.  SRK have also discussed with Ms. Jeffrey the methodology for coal resource estimation based on the geological models.  SRK concur with the procedures and methodologies used by the Company for geological model construction (physical models and coal quality models) as well as with the definition of coal resource blocks. 

All coal analyses were conducted by Witlab (Pty) Limited (“Witlab”) in Witbank, South Africa. Witlab is independent of CIC Energy and specializes in the sampling and analysis of coal. Witlab is in the process of obtaining accreditation through the South African National Accreditation System.

For information with respect to geology, analytical methodology, Quality Assurance/Quality Control, and resource estimate methodology, block model and cut-offs see the Company’s news release dated June 22, 2006. Note that whereas the current resource estimate for the Mookane Block uses no geological losses, the current resource estimates for the Dovedale Block, Serorome Block, Border Block and Mmamabula South use, respectively, 2%, 5%, 5% and 20% interpreted geological loss to account for successively more pronounced faulting within these areas.

Note Regarding Prospecting Licences
The mineral resource estimate announced today is based on the mineral resources covered by Meepong Resources (Proprietary) Limited’s (“Meepong Resources”, a Botswana affiliate of the Company) prospecting licences PL11/2004 and PL75/2002 as of the date hereof.  Meepong Resources has requested the Government of Botswana to grant an extension of the period of such prospecting licences (which extension would be at the discretion of the Minister) for the purpose of preparing and submitting amendments to the mining licence application Meepong Resources previously submitted.  Should either such extensions not be granted or the mining licence application not subsequently be approved, pursuant to the terms of the Botswana Mines and Minerals Act, up to 50% of the surface area of each of the prospecting licences will be required to be released as part of the process of obtaining renewals of the prospecting licences.  As the area to be relinquished is determined by the licence holder, CIC Energy has endeavoured to identify areas that generally are not considered to have exploitable coal or where such coal cannot be exploited on a commercially attractive basis. Consequently, should Meepong Resources be required to release any area, the relinquishment it is not expected to have a material effect on the global mineral resource estimate for Mmamabula.

Future Announcement on Coal Products
CIC Energy is in the process of finalizing the mine planning and modeling related to the coal products that are anticipated to be produced from the Mmamabula Coal Field, based on the updated mineral resource estimate announced today. This work underpins the development of the Company’s three planned projects, the Mmamabula Energy Project, the Coal-to-Hydrocarbons (“CTH”) Project and the Export Coal Project. The Company intends to announce information on the quantity and quality of these planned coal products in the near future. 

About CIC Energy Corp.

CIC Energy is a TSX/BSE-listed company engaged in the advancement of the Mmamabula Energy Complex at its Mmamabula Coal Field in Botswana, Africa. This planned Complex consists of the Mmamabula Energy Project, the Coal-to-Hydrocarbons Project and the Export Coal Project. The Mmamabula Energy Project is envisaged as a power station and integrated coal mine project. The Coal-to-Hydrocarbons Project is intended to produce syngas from coal which can be converted to a variety of downstream products, including fuels and petrochemicals. The planned Export Coal Project is actively investigating ways to export A grade thermal coal from the Mmamabula Coal Field.

Additional information with respect to Mmamabula is contained in an independent technical report dated June 1, 2007 and entitled “CIC Energy Corp.: Mmamabula Project, South-eastern Botswana, Project No. J912, National Instrument 43-101 Technical Report”, a copy of which has been filed on SEDAR and may be accessed at www.sedar.com.

CIC Energy has a treasury of approximately CDN$100 million. For additional information on CIC Energy and Mmamabula, please visit CIC Energy’s website at www.cicenergy.com or contact:

Erica Belling
VP Investor Relations
Tau Capital Corp.
Tel: (416) 361-9636 ext. 243
Email: ebelling@taucapital.com

Forward-Looking Statements

This news release contains certain "forward-looking statements".  All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are forward-looking statements.  These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company.  Such forward-looking statements include, among other things, statements relating to: the Mmamabula Energy Complex with respect to estimates and/or assumptions in respect of mineral resources, mineral resource qualities, targets, future production, goals, objectives, plans and future economic, market and other conditions; and the Company’s application for an extension of its PL11/2004 and PL75/2002 prospecting licences. Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause the actual results to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company.  Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to: the grade, quality and recovery of coal which is mined varying from estimates; delays or failures in obtaining regulatory permits and/or licences (and extensions and renewals thereof) respecting mining, the production of chemicals, including syngas and derivatives of syngas, power generation and/or power transmission lines and other transportation and industrial activities; failure to complete, or delays in the completion of, positive bankable feasibility studies on each of the Mmamabula Energy and CTH Projects, as well as, detailed value-chain and market studies, any requisite interim studies and environmental impact assessments on the CTH Project; inability to enter into power purchase agreements and/or transmission agreements with Eskom Holdings Limited and/or Botswana Power Corporation or other requisite agreements, including preliminary and/or definitive fixed price contracts with reputable engineering, procurement and construction (“EPC”) firm(s) and other agreements required to facilitate the development, operation and financing of the Mmamabula Energy Project on favourable terms or at all ; failure or delays in entering into technology, intellectual property licensing and other agreements required to develop the CTH Project including preliminary and/or definitive fixed price contracts with reputable EPC firms; the failure to identify, or delays in the identification of, preferred end products and their associated technology and logistical solutions for the CTH Project; inflation; changes in exchange rates; the ability to raise the required debt or equity financing for the implementation of the Mmamabula Energy Project and/or the CTH Project on favourable terms or at all; changes in anticipated demand for power in southern Africa; changes in equity markets; capital and operating costs varying significantly from estimates; environmental and safety risks, including increased regulatory burdens; delays in the development of the CTH Project and/or the Mmamabula Energy Project caused by unavailability of equipment, labour or supplies, limited capacity among EPC firms (and resulting less attractive EPC contract terms being made available), climatic conditions or otherwise; geological and mechanical conditions; the existence of undetected or unregistered interests or claims, whether in contract or tort, over the properties of the Company and its subsidiaries and joint venture companies; lack of markets for the Company’s coal resources and any products derived therefrom; political risks arising from operating in Africa; or other factors (including development and operating risks).  Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.  Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

The mineral resource figures disclosed in this news release are estimates and no assurances can be given that the indicated levels of coal will be produced. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While the Company believes that the resource estimates disclosed in this news release are well established, by their nature resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such estimates are inaccurate or are reduced in the future, this could have a material adverse impact on the Company.

Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that mineral resources can be upgraded to mineral reserves through continued exploration.